10 step marketing plan for the generics pharmacy

transcript

10 Step Marketing Planfor

The Generics Pharmacy

Myrtle FrantillaJune 2011

http://myrtlefrantilla.blogspot.com/ 1

Template

http://myrtlefrantilla.blogspot.com/ 2http://myrtlefrantilla.blogspot.com/

Disclaimer

The 10 Step Marketing Plan is one of the requirements in completion of Marketing Management Course under Prof. De Ungria’s class in Ateneo Professional Schools. This is a simplified process hence it has limitations and advantages.

We used a template and publicly available data to come up with this report. Moreover, this is posted and linked on slide share, blogs and facebook for easier access and sharing among students in marketing management class.

Template

Step 1 to 5

1. Identify your target (PTM)2. What do they need, want and demand

(NWD)3. What are their choices (competitors)4. Where is the opportunity (Gap)5. How big is the market (3 Cs)

Template

Step 1 to 5Medicine for masses.

1. Social Class Lower B,C D Filipinos who need cheaper medicines but with same quality of their branded equivalent. It also targets small entrepreneurs who want to have their own businesses.

2. Needs medicine comparable to branded product in terms of dosage, strength and quality without having that are cheaper.

3. Competitors include Mercury Drug, South Star Drug, Botika ng Bayan, Watsons, home made medicine and other local pharmacy.

4. Competitors Sell branded/listed drugs with a higher retail price while Generics pharmacy offers generic drugs with same quality but sold at a lower retail price.

5. Market Size: 6 out of 10 Filipinos are now opting for generic medicines over the more expensive branded counterparts.

(pinoybusiness.org, 2009)

Template

Step 6 to 10

6. Product7. Price8. Promo9. Place10. Generic winning strategy of Mix

Template

Step 6 to 106. Product: The Generics Pharmacy7. Price: Lower price than the branded

medicines 8. Promo: Advertising campaigns

(print,tv,internet), current economic status, 9. Place: Total of 1225 branches as of June 09

201110. Generic winning strategy of Mix: Niche

marketing, Cheaper drugs but with same quality, other services

Template

Cheaper Medicines for the lower class.

Step 1: Primary Target MarketDemographicsAge: All agesSex: Male/FemaleSocial class: Class Lower B,C,D

LifestyleBlue collar worker who does not have medical benefits from his/her company and is receiving subsistencewage. Typical poor Filipino whose job is in the informal sector of economy. Small entrepreneurs can also be

identified as one of their target market.

BehaviorNeeds Medicine but is incapable of buying the brandedones.

Template

Step 2: PTM’s needs, wants and demands

Template

I want cheaper medicine to keep meHealthy all the time but can’t afford too much

I need cheaper medicine with the same quality Of branded equivalents

Step 2: PTM’s needs, wants and demands

Template

Needs: The lower income class Filipinos need to have a cheaper medicine with the same quality of the branded equivalent to address their economic issues.

Wants: The lower income class Filipinos prefers The Generics Pharmacy because it is practical, effective and can be purchased at lower cost.

Demands: The lower income class Filipinos demand to have a cheaper medicine that has the same quality and value compared to its branded counterparts.

Step 3a: Direct and Indirect Competitors

Template

Direct Indirect

Doctor’s Prescribed Medicines

Local Pharmacy

Variables: Price, Economic Status, Behavior, Lifestyle, Availability, Accessibility

The Generics Pharmacy is niche premium product for cheaper medicines

Template

Price/Recommendation Matrix

Upper Class Middle Class Lower Class

HIGH PRICE

LOW PRICE

Price vs. Economic Status

Mercury Drug

Watsons

Botika ng bayan

South Star Drug

Store Alternative

medicine

Med Prescrib

Local Pharm

The Generics Pharmacy niche positioning to the lower income class as best alternative to branded medicine.

Template

Mercury Drug

Watsons

Botika ng Bayan

South Star Drugstore

Very Low Price

Good Quality

BFAD Approved

Accessible

Step 4: identify the Gaps between the customers and consumers.

Template

• The Leading Pharmacy that offers cheaper generic medicine to lower income class Filipinos while offering the same quality of branded meds.

• Affordable and BFAD approved medicines.• Other Value Added Services are being

offered• Very accessible to the masses with 1225

branches nationwide.• Cheaper Medicine Bill paved the way to

higher sales of The Generics Pharmacy but critics question the quality of Generic medicine.

Template

• Basta Generics, Mabisa na, Matipid pa.

Affordable But Effective medicine for the Filipino masses.

Positioning: Brand Identity to the Maker

Template

• The Philippinse pharmaceutical market is valued at $960 million in 2001.

• Approximately 69 percent of market is controlled by the multinational companies (MNC’s), whilst the remaining 31 percent belongs to the generic companies.

Step 5. Estimate the Market Size

Template

Mercury Drug StoreSales: PHP 48 billion est. • operates a national chain of more than 800 drugstores,

including company-owned and franchised stores

• estimated to sell as much as 60 percent of all medicines sold each year in the Philippines (the country's hospitals sell about 12 percent of medicines)

• it follows the American model, combining drug and medical equipment sales with over-the-counter medicines, personal care items, basic household needs, cosmetics and other beauty products

Step 5a. Estimate the Market Size Using Competitors’ data

Template

South Star Drugstore143 branches in Northern Luzon Central Luzon, Southern Tagalog, Metro Manila and the Bicol Region

Watsons Pharmacy• Asian drugstore franchised by SM Prime Holdings Inc., in

which has at least one branch in all 40 SM Supermalls nationwide

• Operates 170 stores in the Philippines serving more than 100,000 customers per day.

Template

References

http://www.watsons.com.ph/web/ph/aboutus

http://www.answers.com/topic/mercury-drug

http://services.inquirer.net/print/print.php?article_id=79284

Template

• The company recorded impressive growth, expanding from one store in 2007, to more than 900 in 2010.

• With a forecast of 1,000 stores by the end of 2010, The Generics Pharmacy is now the chain with the highest number of outlets, overtaking the market leader Mercury Drug.

• In 2011, TGP has 1225 branches nationwide.

Step 5b. Estimate the Market Size Using Company’s data

Template

• I buy medicine in order to cure myself" (33%)• I couldn't afford it" (24%)http://www.sws.org.ph/pr20100916.htm

On type of medicine consumers usually buy• 48% said generic medicine • 33% branded medicine • 19% said both generic and branded. • http://www.sws.org.ph/pr103003.htm

Step 5c. Estimate the Market Size Using Customer data

Template

Step 6. The Generics Pharmacy vs. Competitors

Template

Step 6a. The Generics Pharmacy vs. Competitors

• stocking decisions are based on the profit margin, product range and image. Mercury only keeps 3 brands for each generic formulation.

http://pharmalicensing.com/public/articles/view/1048501737_3e7edde98a0cf/the-generic-invasion-an-inside-scoop-to-the-pot-of-gold

TemplateStep 6b. What makes The Generics Pharmacy different among its competitors?

We believe that health is not a privilege, but a basic right of every Filipino.

• Safe, quality, and affordable generics medicines are the company’s promise.

• Currently it has 1225 branches nationwide versus 800 Mercury Drugstore branches which makes it more accessible to people

• It is strategically situated in Rural areas and places near market and hospitals

• It also the first generics retail pharmacy to offer franchising in the Philippines.

TemplateStep 6b. What makes The Generics Pharmacy different among its competitors?

THEGENERICSPHARMACY has an advocacy of making medicines accessible to ALL Filipinos, coupled with free blood pressure check-up and full 20% discount in all branches.

http://www.thegenericspharmacy.com/about.php

Template

Step 7. Generics Medicine is cheaper by an average of 54.04%

CHOLESTEROL Generic (in peso) Branded (in peso) % DiffFenofibrate cap 100 mg 16.50 19.75 16.46Simvastatin tab 20 mg 15.00 39.50 62.03HYPERTENSION Generic Branded % DiffAmlodipine tab 10 mg 19.65 74.75 73.71Nifedipine tab 20 mg 19.00 35.50 46.48ASTHMA Generic Branded % DiffSalbutamol 100 mcg Inhaler 280.00 406.75 31.16

ARTHTRITIS / BODY PAIN Generic Branded % Diff

Naproxen cap 500 mg 7.00 22.50 68.89NERVOUS SYSTEM Generic Branded % DiffFluoxetine cap 20 mg 40.00 126.00 68.25Sertraline 39.00 113.50 65.64DIABETES Generic Branded % Diff

Human Insulin 1 vial 800.00 1,276.50 37.33

Metformin tab 500 mg 3.25 11.00 70.45

http://fitzvillafuerte.com/generic-medicines-a-comparative-price-study-on-generic-cholesterol-and-other-maintenance-medicines.html

Template

Step 7. Generics Medicine is cheaper by an average of 54.04%

http://fitzvillafuerte.com/generic-medicines-a-comparative-price-study-on-generic-cholesterol-and-other-maintenance-medicines.html

• consumers can basically save up to 70% by purchasing generic medicines.

Template

Step 8. Which of these modes does TGP use?

MASS PERSONAL

Sales Promotion Direct Marketing

1. Advertising Interactive Marketing

Public Relations Personal Selling

2. Events and Experiences3. Word of Mouth

Template

Step 8a. TV ads always appeal to an average Filipino Family

Template

Step 8a. TGP promotes through its Value Added Services

24k cardholders will enjoy more benefits through Cebuana Lhuillier’s partnership with The Generics Pharmacy (TGP). Cash coupons may now be used at any Metro Manila branch of TGP.

Template

Step 8b. Mercury Drug Promotions

Template

Step 8b. Watsons Pharmacy Promotions

Template

Step 8b. South Star Drugstore Promotions

Template

Step 9. Where is TGP available?

• Nationwide with 1225 branches as of June 2011

• Outlets near market and public hospitals

• Online (website)

• Phone orders

Template

Step 9. Where is TGP available?

Template

Step 10. TGP is the niche leader in Generic medicine Retailing.

• Its advocacy is to make medicines accessible to ALL Filipinos, coupled with free blood pressure check-up and full 20% discount in all branches.

• BFAD approved, TGP is safe, high quality, and affordable generics medicine.

• It caters to the larger percentage of population in the Philippines, the masses.

Template

SUMMARY

Summary Headline 1. Social Class Lower B,C D Filipinos who need cheaper

medicines but with same quality of their branded equivalent. It also targets small entrepreneurs who want to have their own businesses.

2. Needs medicine comparable to branded product in terms of dosage, strength and quality without having that are cheaper.

3. Competitors include Mercury Drug, South Star Drug, Botika ng Bayan, Watsons, home made medicine and other local pharmacy.

4. Competitors Sell branded/listed drugs with a higher retail price while Generics pharmacy offers generic drugs with same quality but sold at a lower retail price.

5. Market Size: 6 out of 10 Filipinos are now opting for generic medicines over the more expensive branded counterparts.

(pinoybusiness.org, 2009)

Template

6. Product: The Generics Pharmacy7. Price: Lower price than the branded

medicines 8. Promo: Advertising campaigns

(print,tv,internet), current economic status, 9. Place: Total of 1225 branches as of June 09

201110. Generic winning strategy of Mix: Niche

marketing, Cheaper drugs but with same quality, other services

Template

Summary Headline

10 Step Marketing Planfor

Myrtle FrantillaJune 2011

http://myrtlefrantilla.blogspot.com/ 39

Template

10 step marketing plan for the generics pharmacy

Documents